U.S. Cannabis Spot Index — January 11, 2019

U.S. Cannabis Spot Index — Published January 11, 2019

U.S. Cannabis Spot Index down nominally 0.2% at $1,163 per pound.

 

The simple average (non-volume weighted) price decreased by $36 to $1,257 per pound, with 68% of transactions (one standard deviation) in the $496 to $2,017 per pound range. The average reported deal size declined to 4.0 pounds this week from 4.1 pounds last week. In grams, the Spot price was $2.56, and the simple average price was $2.77.

 

The relative frequency of trades for indoor flower grew this week, by 1%, while that for greenhouse product decreased by the same proportion. The relative frequency of transactions for outdoor flower was unchanged compared to last week. Warehouse product’s share of the total reported weight moved nationally grew by 3% this week, while the relative volumes of greenhouse and outdoor flower contracted by 1% and 2%, respectively. The relative volume of outdoor product is down from its harvest-season peak of 33%, where it settled over several weeks in November.

The U.S. Spot Index slipped downward for the second consecutive week, decreasing slightly, by 0.2%, to $1,163 per pound. Prices for indoor flower dipped notably in multiple major markets this week, which depressed the national average for such product and pulled down the U.S. composite rate. The nation’s two largest markets – California and Colorado – saw their Spot Indices hold fairly steady compared to last week, with both seeing nominal rises, with the same going for Nevada. Meanwhile, Oregon and Arizona were the two most sizeable state markets to see downturns in their composite prices, while decreases in the Spot prices of Illinois and New Mexico also applied downward pressure on the national average. Overall, this week’s U.S. Spot Index is down by 13.2% year-over-year, compared to the rate of $1,340 per pound documented in the week ending January 12, 2017.

The national volume-weighted price for flower to be sold in adult-use markets rose slightly this week. Rising rates in Colorado, Washington, and Nevada, with assistance from upticks in Alaska and Massachusetts, outweighed a decrease in Oregon. The composite price in California’s adult-use sector was virtually flat week-over-week. Sinking wholesale rates in Arizona, Illinois, and New Mexico were primarily responsible for a marginal decrease in the national price for product designated for registered patients.     

February 2019 Forward unchanged at $1,000 per pound.

 

The average reported forward deal size declined nominally to 55.2 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 55%, 29%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 62 pounds, 49 pounds, and 43 pounds, respectively.

 

At $1,100 per pound, the February 2019 Forward represents a discount of 5.4% relative to the current U.S. Spot Price of $1,163 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample Headlines From This Week’s Premium Report:

  • California

    State Spot Index Climbs Gradually in Early Weeks of 2019, Continuing Trend from End of 2018

  • Colorado

    December’s Monthly Spot Index Up Over 9% Compared to Prior Month, But Quarterly Composite Prices Virtually Flat from Q3 to Q4 2018

  • Oregon

  • Volume-Weighted Price for Indoor Flower Declines for Fifth Straight Week, Falls to Historic Low for Oregon’s Market
  •  
  • Washington

  • Average Spot Rate for Q4 2018 Down by 18% Compared to Previous Quarter
  •  
  • Massachusetts

  • Spot Index Rises for Twelfth Consecutive Week, Exceeding 2018’s Annual High Price
  •  
  • Illinois

  • Medical Market Expands Dramatically in 2018: Retail and Wholesale Revenues Up by 58% and 55%, Respectively, from 2017, Driving 17% Rise in Spot Index Over the Course of Last Year

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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

11 January 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

U.S. Cannabis Spot Index — January 4, 2019

U.S. Cannabis Spot Index — Published January 4, 2019

U.S. Cannabis Spot Index opens 2019 down 0.9% at $1,165 per pound.

 

The simple average (non-volume weighted) price decreased by $48 to $1,292 per pound, with 68% of transactions (one standard deviation) in the $524 to $2,061 per pound range. The average reported deal size was nominally unchanged at 4.1 pounds. In grams, the Spot price was $2.57, and the simple average price was $2.85.

 

The relative frequency of trades for outdoor flower grew this week, by over 1%, while that for indoor product decreased by the same proportion. The relative frequency of transactions for greenhouse flower was unchanged compared to last week. Similarly, each individual grow type’s share of the total reported weight moved nationwide was stable compared to the final week of 2018. One year ago, in the opening week of 2018, the relative volumes of warehouse, greenhouse, and outdoor product were documented at 46%, 37%, and 17%, respectively.

The U.S. Spot Index opened 2019 with a small decline, sliding by 0.9% to settle at $1,165 per pound. A decrease in the national volume-weighted price for indoor-grown flower was primarily responsible for pulling down the U.S. composite price. The national price for warehouse flower slipped mainly due to declines in the going rate for that grow type in all three West Coast markets. Also from a state-level perspective, week-over-week decreases in the Spot Indices of Oregon, Washington State, and Arizona outweighed upward price movement in California, Colorado, and Michigan. This week’s U.S. Spot Index is off by 22.5% year-over-year, compared to the national composite price of $1,503 per pound, documented in the opening week of 2018.

The national volume-weighted price for flower to be sold in adult-use markets declined this week. Decreases in California’s adult-use sector, as well as in Oregon and Washington, outweighed upticks in Colorado and Alaska. Sinking wholesale rates in Arizona, Illinois, Maine, and New Mexico were primarily responsible for pushing down slightly the national price for product designated for registered patients.   

July 2019 Forward assessed at $1,000 per pound.

 

The average reported forward deal was unchanged at 55.8 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 54%, 29%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 63 pounds, 50 pounds, and 43 pounds, respectively.

 

At $1,100 per pound, the February 2019 Forward represents a discount of 5.6% relative to the current U.S. Spot Price of $1,165 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample Headlines From This Week’s Premium Report:

  • California

    Licensed Cultivators Outnumber Retailers by About Four to One as of End of 2018, the Largest Disparity of Any Adult-Use Market

  • Oregon

    State Officials Predict that Incorporating Industrial Hemp Products into Licensed Cannabis Market Could Hurt Growers, but May Improve Bottom Lines of Processors, Wholesalers, and Retailers

  • Nevada

  • Total Retail Sales Top $50 Million for the First Time in October, But State Spot Index Ticked Downward Over the Course of the Month
  •  
  • Michigan

  • Regulators Force Unlicensed Businesses to Shutter with Close of 2018, Shrinking Significantly the Number of Operations Serving the State’s 300,000 Patients
  •  

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4 January 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

U.S. Cannabis Spot Index — December 28, 2018

U.S. Cannabis Spot Index — Published December 28, 2018

U.S. Cannabis Spot Index up 2.5% to $1,175 per pound.

 

The simple average (non-volume weighted) price increased by $46 to $1,341 per pound, with 68% of transactions (one standard deviation) in the $549 to $2,133 per pound range. The average reported deal size was nominally unchanged at 4.1 pounds. In grams, the Spot price was $2.59, and the simple average price was $2.96.

 

The relative frequency of trades for greenhouse flower grew this week, by 1%, while that for outdoor product decreased by the same proportion. The relative frequency of transactions for indoor flower was unchanged compared to last week. Warehouse-grown flower’s share of the total reported weight moved nationwide increased by 1% this week, as did the relative volume of greenhouse product. Consequently, the relative volume of outdoor flower contracted by 2% week-over-week.

The U.S. Spot Index finished 2018 with three consecutive weeks of positive movement, rising this week by 2.5% to settle at $1,175 per pound. For December, the national volume-weighted rate averaged $1,136 per pound, up by 5.7% from November’s mean monthly Spot Index of $1,075 per pound. Despite the recent upward momentum exhibited by the national composite price, however, a broader view demonstrates that this year saw significant price erosion. The U.S. Spot sank by 21.8% from the opening to the closing week of 2018. Additionally, for Q4, the national composite rate averaged $1,094 per pound, off by 32.8% compared to the quarterly average price of $1,417 per pound, documented in the same period in 2017. Yet, Q4 2018’s mean going rate is off by only 2.2% from Q3’s quarterly average price of $1,119 per pound. Rising rates in California, Colorado, and Oregon in the wake of the fall harvest period worked to mitigate the quarter-over-quarter downturn.

The national volume-weighted price for flower to be sold in adult-use markets jumped this week. Increases in California’s adult-use sector, as well as in Colorado and Nevada, outweighed marginal declines in Oregon and Washington. Sinking wholesale rates in the medical portion of California’s market, as well as in Arizona, were primarily responsible for pushing down slightly the national price for product designated for registered patients.   

January 2019 Forward closes up $25 to $1,150 per pound.

 

The average reported forward deal decreased to 55.8 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 54%, 29%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 63 pounds, 49 pounds, and 43 pounds, respectively.

 

At $1,150 per pound, the January 2019 Forward represents a discount of 2.2% relative to the current U.S. Spot Price of $1,175 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample Headlines From This Week’s Premium Report:

  • California

    State Spot Index Falls by Almost 18% Over Course of 2018, Even as Compliance Costs Increased With Imposition of Licensing and Regulation

  • Colorado

    Weekly Composite Price Sees Smallest Proportional Decline of the Major Western Markets in 2018

  • Oregon

  • Composite Price Ticks Downward Slightly this Week, Off by 60% From Opening Week of 2018
  •  
  • Washington

  • State Spot Index Slides Over 55% from Beginning to End of 2018, Down Nearly 20% from Start of Q4
  •  

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28 December 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

U.S. Cannabis Spot Index — December 21, 2018

U.S. Cannabis Spot Index — Published December 21, 2018

U.S. Cannabis Spot Index up 1.4% to $1,147 per pound.

 

The simple average (non-volume weighted) price increased by $16 to $1,294 per pound, with 68% of transactions (one standard deviation) in the $515 to $2,074 per pound range. The average reported deal size declined to 4.1 pounds from 4.2 pounds last week. In grams, the Spot price was $2.53, and the simple average price was $2.85.

 

The relative frequency of trades for indoor flower grew this week, by 1%, while that for greenhouse product decreased by the same proportion. The relative frequency of transactions for outdoor flower was unchanged compared to last week. Warehouse-grown flower’s share of the total reported weight moved nationwide increased by over 2% this week, while the relative volume of outdoor product contracted by the same proportion. The relative volume of greenhouse flower was stable week-over-week.  

The U.S. Spot Index rose for the second straight week, by 1.4%, to settle at $1,147 per pound. This week’s national composite price is the highest observed since early in H2 – in the week ending July 13th, specifically – and is up by 9.6%, or $100, from the current annual trough documented in the week ending November 9th. Still, as we close in on the end of 2018, this week’s U.S. Spot rate is off by nearly 20% year-over-year, compared to the national composite price of $1,431 per pound reported for the week ending December 22, 2017. This week’s uptick in the U.S. Spot was due largely to rising supply side rates in California and Colorado. Perhaps the most notable state-level price movement – the increase that took place in Massachusetts – had a minimal effect on the overall national average.

The national volume-weighted price for flower to be sold in adult-use markets slipped slightly this week. Declines in California’s adult-use sector, as well as in Oregon, Nevada, and Alaska, outweighed small increases in Colorado and Washington. Increases in wholesale rates in the medical portion of California’s market, as well as in Michigan, Massachusetts, and Illinois, were primarily responsible for pushing up the national price for product designated for registered patients.   

January 2019 Forward up $25 to $1,125 per pound.

 

The average reported forward deal decreased to 56.4 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 53%, 29%, and 18% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 65 pounds, 49 pounds, and 43 pounds, respectively.

 

At $1,125 per pound, the January 2019 Forward represents a discount of 1.9% relative to the current U.S. Spot Price of $1,147 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample Headlines From This Week’s Premium Report:

  • California

    Composite Price Has Climbed 13% Since Falling to Harvest-Season Trough in Late October

  • Colorado

    Year-to-Date Average Rates for Indoor and Greenhouse Flower Down by Roughly 15% and 35%, Respectively, Compared to 2017’s Mean Prices

  • Oregon

  • State Spot Index Down 5.5% This Week, Largest Week-Over-Week Decline Observed So Far in Q4
  •  
  • Washington

  • Volume-Weighted Price for Greenhouse Flower Falls to Historic Low for Such Product in Any Market, Approaching $525 Per Pound
  •  
  • Massachusetts

  • State Spot Index Jumps by $100 Week-Over-Week, Up Almost 8% Since Beginning of Adult-Use Sales

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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

21 December 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

CANNABIS BENCHMARKS WEEKLY REPORT — December 14, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED December 14, 2018

U.S. Cannabis Spot Index up 3.8% to $1,131 per pound.

 

The simple average (non-volume weighted) price increased by $63 to $1,279 per pound, with 68% of transactions (one standard deviation) in the $514 to $2,044 per pound range. The average deal size was nominally unchanged at 4.2 pounds. In grams, the Spot price was $2.49, and the simple average price was $2.82.

 

The relative frequency of trades for indoor flower grew this week, by 2%, while that for greenhouse product decreased by the same proportion. The relative frequency of transactions for outdoor flower was unchanged compared to last week, as was the relative volume of such product. Warehouse-grown flower’s share of the total reported weight moved nationwide increased by over 2% this week, while the relative volume of greenhouse product contracted by the same proportion.    

The U.S. Spot Index jumped by 3.8% this week to settle at $1,131 per pound, the highest national composite price documented since July. While 12 of the 17 state markets covered by our reporting were observed to see week-over-week upticks in their Spot Indices, the overall increase in wholesale pricing at the national level was driven primarily by upward-trending rates in California and Colorado. The latter state’s wholesale market appears to be bucking last year’s trends, which saw prices fall to  what were then record lows to close 2017. Washington State was the only major market to see its composite rate decline this week, the continuation of a recent trend that has resulted in the repeated establishment of new historically low prices.

The national volume-weighted prices for flower to be sold in adult-use and medical markets both increased by magnitudes similar to the U.S. Spot Index this week. In the adult-use realm, only Washington State saw a week-over-week drop in wholesale prices. Most medical cannabis markets covered by our reporting was observed to see rising rates, apart from small declines documented in Arizona, Maine, New Mexico, and Vermont.  

January 2019 Forward up $35 to $1,100 per pound.

 

The average reported forward deal decreased nominally to 57.2 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 53%, 30%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 65 pounds, 49 pounds, and 43 pounds, respectively.

 

At $1,100 per pound, the January 2019 Forward represents a discount of 2.7% relative to the current U.S. Spot Price of $1,131 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample Headlines From This Week’s Premium Report:

  • California

    Prices for Indoor and Greenhouse Flower Rise to Highest Points Since April and May, Respectively

  • Colorado

    Spot Index Trended Downward in October as Total Retail Sales Contracted for the Second Consecutive Month

  • Oregon

  • State Data Shows 2018 Harvest Just as Large as Last Year’s, Resulting in Almost 1.3 Million Pounds of Unsold Product in Licensed System as of Early December
  •  
  • Washington

  • Volume-Weighted Price for Indoor Flower Reported to Fall Below $700 Per Pound for the First Time in Any Market
  •  
  • Nevada

  • New Adult-Use Retail Licenses Issued, Nearly Doubling Current Number of Open Shops; Eventual Effect on Wholesale Pricing Contingent on Numerous Factors
  •  
  • Illinois

  • Strong Demand Continues in November, While Wholesale Pricing Holds Steady

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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

3 August 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

CANNABIS BENCHMARKS WEEKLY REPORT — December 7, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED December 7, 2018

U.S. Cannabis Spot Index down nominally, by 0.1%, to $1,089 per pound.

 

The simple average (non-volume weighted) price decreased by $8 to $1,216 per pound, with 68% of transactions (one standard deviation) in the $494 to $1,937 per pound range. The average deal size increased nearly 3% to 4.2 pounds from 4.1 pounds last week. In grams, the Spot price was $2.40, and the simple average price was $2.68.

The relative frequency of trades for greenhouse flower increased again this week, by more than 2%. The relative frequency of deals involving indoor product contracted marginally, while that for transactions of outdoor flower decreased by about 2%. Each individual grow type’s share of the total reported weight moved nationally was largely stable week-over-week, although a comparison of the chart below with last week’s shows that the relative volume of greenhouse product grew marginally.  

The U.S. Spot Index slipped marginally this week, by 0.1%, to settle at $1,089 per pound. Declines in Washington State and Nevada, as well as a small decrease in Arizona’s Spot Index, were enough to pull down the national average slightly. Additionally, as we noted last week, Oregon continues to see lower-than-usual trading volume, while that documented in Washington made up a larger proportion of the weight moved nationally than is typical. Overall, the U.S. Spot Index is up by 1.1% quarter-to-date, and has been lifted by rising volume-weighted prices for indoor and outdoor-grown flower. The national going rate for greenhouse product has declined since the outset of Q4, but by less than 1%.

The national volume-weighted price for flower to be sold in adult-use markets continued to climb this week, as rising wholesale rates in Colorado and Oregon outweighed declines in Washington, Nevada, and California’s recreational sector. Increases in rates for flower designated for patients in California, Michigan, Massachusetts, and New Mexico were not enough to push up the national rate for product in medical markets.   

June 2019 Forward assessed at $1,000 per pound.

 

The average reported forward deal increased to 57.6 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 53%, 30%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 67 pounds, 49 pounds, and 44 pounds, respectively.

 

At $1,065 per pound, the January 2019 Forward represents a discount of 2.2% relative to the current U.S. Spot Price of $1,089 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample Headlines From This Week’s Premium Report:

  • California

    State Spot Index up Almost 9% from Harvest Season Trough in Late October, But Rates for Outdoor Continue to Slide Downward Gradually

  • Colorado

    Composite Price Ascends to Settle Above $900 Per Pound for the First Time Since July

  • Oregon

  • Monthly Average Spot Index for November Up 8% Compared to October’s, as Recovery in Weekly Composite Price Continued This Week
  •  
  • Washington

  • State Spot Index and Prices for Indoor and Greenhouse Flower Fall to Historic Lows for Any Market
  •  
  • New Mexico

  • Production Contracted in Q3, According to State Data, But Dispensaries Increased On-Hand Inventory and Wholesale Pricing Declined
  •  

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3 August 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

CANNABIS BENCHMARKS WEEKLY REPORT — November 30, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED NOVEMBER 30, 2018

U.S. Cannabis Spot Index down 1.1% to $1,091 per pound.
The simple average (non-volume weighted) price decreased by $32 to $1,224 per pound, with 68% of transactions (one standard deviation) in the $480 to $1,968 per pound range. The average deal size decreased 6.8% to 4.1 pounds from 4.4 pounds last week. In grams, the Spot price was $2.40, and the simple average price was $2.70.

The relative frequency of trades for greenhouse flower increased this week, by less than 2%, while that for deals involving indoor product contracted by the same proportion and the relative frequency of transactions for outdoor flower was flat. Greenhouse product’s share of the total reported weight moved was stable week-over-week. Meanwhile, the relative volume of warehouse flower grew by 1% compared to last week, while that for outdoor product decreased by the same proportion.

The U.S. Spot Index declined by 1.1% this week to settle at $1,091 per pound. This despite three of the four major Western markets – Colorado, Oregon, and Washington State – seeing increases in their composite prices. However, the total volume of trading reported in Oregon was smaller than usual, lessening the influence of that state’s Spot Index on the national average. The U.S. Spot averaged $1,075 per pound for November, virtually identical, but down marginally, compared to October’s monthly mean price of $1,076 per pound. In 2017, the national composite rates’s monthly average ticked downward by 0.6% from October to November, from $1,421 to $1,412 per pound.

The trend line of the U.S. Spot Index continued its upward momentum this week, but its rate of increase was tempered slightly by the decline in the national weekly volume-weighted average. The Trailing 4-Week Average of Colorado’s composite price is now displaying clear positive movement after very a very modest upturn last week. Despite significant regulatory uncertainty, the trend line of Michigan’s Spot Index continues to sink gradually, behavior that commenced in mid-October. The downward trend in wholesale prices in Michigan may be due to a significant reduction in wholesale buyers, which we note in the Forward Curve commentary. While outdoor growing is permitted under Nevada’s rules, such product has not been reported as part of the state’s supply mix at this time and the Trailing 4-Week Average of the Silver State’s Spot Index has climbed upward through this month.

December 2018 Forward closes up $25 to $1,100 per pound.

The average reported forward deal declined nominally to 56.5 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 54%, 30%, and 16% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 67.5 pounds, 44 pounds, and 43 pounds, respectively.

At $1,100 per pound, the December Forward represents a premium of 0.8% relative to the current U.S. Spot Price of $1,091 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample headlines from this week’s Premium Report:

  • California

    Volume-Weighted Price for Indoor-Grown Flower Up 15% Quarter-to-Date

  • Colorado

    State Spot Index Up 5.5% Compared to Historic Low Observed Three Weeks Ago

  • Oregon

  • State Composite Rate up 20% Quarter-to-Date, Even as Prices for Outdoor Flower Sink with Reports of Robust Fall Harvest
  •  
  • Washington

  • State Spot Index Experiences First Week-Over-Week Rise Since Close of August, But Still Down 16% Quarter-to-Date
  •  
  • Arizona

  • Sales Volume to Patients Reaches New Record Heights in October, But Stability in Wholesale Pricing Indicates Adequate Supply to Meet Demand
  •  
  • Michigan

  • Regulators Formulate Proposal to Commence Licensed Medical Market, While Allowing Licensees to Supplement Supply by Purchasing From Caregivers
  •  

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3 August 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

CANNABIS BENCHMARKS WEEKLY REPORT — November 21, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED NOVEMBER 21, 2018

HAPPY THANKSGIVING!!!

U.S. Cannabis Spot Index up 2.5% to $1,103 per pound.

 

The simple average (non-volume weighted) price decreased by $6 to $1,256 per pound, with 68% of transactions (one standard deviation) in the $489 to $2,024 per pound range. The average deal size increased 4.2% to 4.4 pounds from 4.2 pounds last week. In grams, the Spot price was $2.43, and the simple average price was $2.77.


The stability that has recently characterized national Transaction Stats was again on display this week. The relative frequency of trades for greenhouse flower contracted marginally, by less than 1%, with any corresponding increases so small as to not be visible in the chart below. Indoor-grown product’s share of the total reported weight moved nationwide in state-legal markets expanded by 1% compared to last week; the relative volume of outdoor flower decreased by the same proportion, while that for greenhouse product was unchanged.  

The U.S. Spot Index followed last week’s 2.7% rise with an increase of 2.5% this week, causing it to settle at $1,103 per pound. This week’s national composite price is the highest observed since September 7th, prior to the commencement of the harvest season. A notable uptick in California’s Spot rate was primarily responsible for the continued climb of the national average this week, while an increase in Colorado’s composite price also applied upward pressure. Rising prices in the two largest state-legal cannabis markets overwhelmed continued downturns in Washington State, where historically low wholesale rates continue to be reported, as well as modest declines in the Spot Indices of Oregon and Nevada. Last year at this time, the U.S. Spot Index experienced a rise of 1.8% in the week of the Thanksgiving holiday.

The national volume-weighted price for flower to be sold in adult-use markets climbed again this week, as upticks in California and Colorado outweighed declines in Washington and Alaska, as well as marginal downturns observed in Oregon and Nevada. A rise in rates for flower designated for patients in California, along with an increase in Arizona’s Spot Index, were the primary drivers of the increase in the national volume-weighted price for product in medical markets.

December 2018 Forward up $25 to $1,075 per pound.

 

The average reported forward deal increased 1 pound to 57 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 55%, 30%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 68 pounds, 44 pounds, and 41 pounds, respectively.

 

At $1,075 per pound, the December Forward represents a discount of 2.6% relative to the current U.S. Spot Price of $1,103 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample headlines from this week’s Premium Report:

  • California

    Volumes of Flower, Trim, and Fresh Plants Sold Wholesale in Q3 All More Than Double Compared to Prior Quarter

  • Oregon

    Harvest Season Inspections and Enforcement Could Result in License Cancellations for Dozens of Growers

  • Nevada

  • Retail Sales and Wholesale Tax Receipts Increased Slightly in August, Along with State Spot Index
  •  
  • Massachusetts

  • Adult-Use Sales Commenced This Week, But Only Two Storefronts Open to Serve General Consumers
  •  

 Watch our CEO, Jonathan Rubin, in his latest appearance on BNN Bloomberg discussing the price declines experienced in competitive U.S. markets and the likely parallels forthcoming in Canada.

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

3 August 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved